How is Hong Kong bridging protection gaps?

More than half of Hong Kong’s workforce have experienced income loss due to illness or disability. Yet a survey by Zurich Insurance (Hong Kong) revealed that half of the local workforce lack sufficient savings to last six months without income. The report also revealed that Hong Kongers feel they are most vulnerable to income loss. Only a quarter of respondents believe they have a less than 10% chance of lost earnings due to illness or disability, versus the more confident 38% average of the 11 markets surveyed.

Eric Hui, chief executive officer, Zurich Insurance (Hong Kong), said, “The study highlights a serious issue with income protection gaps in Hong Kong. Income protection is not a pleasant topic, and it’s complex, so people often need a trigger to motivate them to act. We hope the report will stimulate debate, and help more people in Hong Kong prioritise income protection, seek professional advice, and formulate a long-term plan.”

Significant gaps
The findings from the second phase of the study reveal that Hong Kong workers are more likely (54%) to experience income loss in working life due to serious illness/disability than any of the respondents of the markets surveyed (average 44%). The research also shows that 54% of those surveyed had personally experienced income loss due to sickness or accident. Of those that experienced income loss, over one-third (38%) suffered income loss for longer than six months. Of those without income protection insurance, less than half (45%) said they would consider investing in protection, with most citing price as the biggest barrier. Mr Hui, said, “The lack of protection, combined with Hong Kong’s increased longevity and rising healthcare costs, presents a significant protection gap challenge for the city.”